The Real Reason It's Hard For Startups To Scale Internationally

The Real Reason Its Hard For Startups To Scale Internationally

  • The real reason it’s hard for startups to scale internationally is the same reason many of these startups are initially able to gain momentum domestically: developing a product that fits the needs of their specific market.
  • If, however, a company initially foregoes a deeply localized product approach to cater to the needs of users in several countries at once, it’s likely the company’s product won’t get the initial boost of domestic engagement and adoption needed to get it off the ground.
  • In an era of globalization where giants like Amazon, Uber, and Google are expanding internationally and have their sights set on emerging markets, local companies starting up in these emerging markets must use every advantage at their disposal to gain traction and stay competitive.
  • Home Court Advantage Time refers to the head start these companies have to establish themselves in their native markets before global companies enter and begin to capture share.
  • Space refers to the deep knowledge local companies have about their country and its consumers--a knowledge that typically takes global companies several years to amass.
  • Additionally, following a localized product approach allows local companies to exploit their deep market knowledge to attract consumers by offering a highly customized product.


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